Expanding biofuel demand is a “powerful catalyst” to restore profitability to American farms, according to a new study, as harvests balloon and lawmakers consider broadening the market for corn-based ethanol.
Climbing crop yields are creating persistent surpluses thanks to better technology, yet at the same time demand is stagnating, according to research by S&P Global Energy. The scenario will lead to reduced cropland and dropping farmer profits, according to the study.
“Without new markets, sustained surpluses are likely to place downward pressure on prices, erode farm incomes, weaken rural economies, and discourage long-term investment and innovation,” the study said.
Expanding ...